IMF

The government has prematurely ended KV Subramanian's term as India's executive director at the IMF, effective April 30, 2025, without providing an official reason. Subramanian, who began his tenure in November 2022, had previously served as the government's chief economic advisor.

Following the recent terror attack in Jammu and Kashmir, India is preparing to urge international financial institutions like the IMF and World Bank to reassess their financial aid to Pakistan. This diplomatic push comes before a crucial IMF meeting where Pakistan's financial arrangements will be discussed. India aims to highlight concerns about Pakistan's role in fueling terrorism.

India is escalating its efforts against Pakistan, urging international bodies like the IMF to re-evaluate financial aid due to alleged support for terrorism. New Delhi seeks a review of IMF loans, including a recent $1.3 billion climate resilience loan, and is engaging with the World Bank and Asian Development Bank.

Worrying about a vacation might feel flippant when the world is falling apart, but who wants to be detained because they have a tattoo or liked a social media post?

India is considering opposing a $1.3 billion IMF loan for Pakistan, citing concerns about terror support and fund misappropriation. The IMF board is set to evaluate the loan and the ongoing $7 billion bailout package.

Finance Minister Nirmala Sitharaman, during her US visit, affirmed India's significant growth potential, recognized by global institutions like the World Bank and IMF, positioning the nation as a key driver for global trade. She highlighted India's commitment to becoming a developed nation by 2047, focusing on women, the underprivileged, youth, and farmers.

India's foreign exchange reserves increased for the eighth consecutive week, reaching $688.129 billion. The rise was primarily driven by an increase in foreign currency assets, although gold reserves saw a slight decline. Year-on-year, the reserves have grown significantly, reflecting the strength and adequacy of India's external buffer.

IMF head Kristalina Georgieva says a global recession is unlikely. This is despite trade tensions sparked by US tariffs. However, these trade disruptions will cost significantly. The IMF expects markdowns to global growth. Georgieva urges countries to adjust fiscal policy. She also wants central bank independence. China should boost domestic consumption. The US must address surging public debt.

An Ahmedabad-based senior manager lost ₹1.93 crore in an online matrimonial fraud after connecting with a woman named Deswal Lalita on a matrimonial site. Lalita, posing as a doctor from Los Angeles, claimed to be arriving in India with $2 million. Subsequently, the victim was defrauded of large sum of money through various fraudulent charges.

Gustavo Petro, the Colombian president, stated his US travel visa got cancelled. He mocked Trump while blaming him for the action. Petro mentioned this prevents him from attending IMF and World Bank meetings in Washington. The US State Department has not confirmed the visa cancellation. Tensions rose between Petro and Trump earlier this year over deported migrants.

The South African finance ministry said on Thursday the government had abandoned a plan to increase value-added tax that had been rejected by the ANC's main coalition partner. The finance ministry said on Thursday its now-ditched plan to raise VAT had been "motivated by the urgent need to restore and replenish the funding of critical frontline services that had suffered reductions necessitated by the country's constrained fiscal position".

Pakistan seeks a $1.4 billion increase in its currency swap line with China. Finance Minister Aurangzeb confirms the request. Pakistan plans to launch its first Panda bond by year-end. This comes amid heightened tensions with India after the Pahalgam attack. Trade between India and Pakistan has significantly decreased. Indirect trade continues via third countries.

NITI Aayog CEO B V R Subrahmanyam projects India to surpass Germany and Japan, becoming the world's third-largest economy within three years. He envisions India potentially reaching the second position globally by 2047, with a USD 30 trillion economy. Subrahmanyam emphasized India's demographic advantage as a stable supplier of working-age individuals amid global population decline.

India and Pakistan, once sharing economic fates, now exhibit a stark contrast in foreign exchange reserves. India's reserves soared to over $688 billion due to liberalization, a booming service sector, and consistent policies. Pakistan's reserves struggle at $15 billion, hampered by political instability, reliance on external aid, and limited export diversification.

Amidst escalating trade tensions, China denies ongoing negotiations with the US, contradicting President Trump's claims of communication with Xi Jinping. Beijing insists Washington must rectify its errors and eliminate tariffs for dialogue to resume. The trade war's uncertainty is causing anxiety among businesses and foreign leaders, with rising prices and plummeting imports impacting US companies.

India may soon be the first nation to strike a bilateral trade deal with the US under President Trump's reciprocal tariff policy, according to US Treasury Secretary Scott Bessent. Negotiations are reportedly near a breakthrough, facilitated by India's relatively low tariffs and minimal trade barriers.

California's GDP surpassed Japan's in 2024, reaching $4.1 trillion, driven by its thriving tech industry and property market. Governor Newsom cautioned that President Trump's tariff policies threaten this economic growth, leading to a lawsuit challenging the tariffs' legality. California, along with other states, argues these tariffs harm businesses and residents, while the White House dismisses the challenge.

Following India's sanctions after the Pahalgam terror incident, the Pakistan Stock Exchange plummeted, with the KSE-100 index dropping 2.12%. India halted the Indus Waters Treaty, closed the Wagah-Attari border, and revoked Pakistani citizens' visa privileges.

Pakistan stands at a crossroads. It can choose to embrace a future of amicable relations with India, or risk a repetition of the circumstances that led to the breakup of the nation

US Treasury Secretary Bessent advocated for international cooperation and criticised the IMF and World Bank for straying from their core missions, signaling a nuanced approach to global finance. However, this message was immediately countered by the White House, which reaffirmed its commitment to maintaining tariffs on China until a new deal is reached.

The IMF's April 2025 World Economic Outlook revised India's 2025 GDP growth to 6.2%, down from the previously projected 6.5%, due to increased trade tensions and global uncertainty stemming from US tariff policies.

Switzerland is among 15 nations selected by the U.S. for privileged tariff negotiations following widespread trade disruptions. Swiss President Karin Keller-Sutter expressed satisfaction with recent talks in Washington, highlighting the U.S.'s desire for a swift resolution. The U.S. has been Switzerland's top export market since 2021, with bilateral trade reaching $185.9 billion in 2023.

India's economic growth could be slashed by 0.5% due to US tariffs, according to Finance Secretary Seth. Speaking in Washington, Seth highlighted potential damage from indirect consequences, even as India aims for 7% growth in the next decade. The WTO forecasts a global trade slowdown, exacerbated by US policies and tensions with China.

Donald Trump's tariff plans have increased the risks to public finances, the international monetary fund said Wednesday, warning countries to get their spending plans under control and prepare for "sharper" trade-offs. "Fiscal policy now faces a sharper trade-off between reducing debt, building buffers against uncertainties and accommodating spending pressures, all amidst weaker growth prospects, higher financing costs, and heightened risks," it added.

India and Saudi Arabia reaffirmed their commitment to deeper cooperation in education, economic corridors, international coordination, and regional peace as part of Prime Minister Modi's state visit to the Kingdom on April 22, 2025.

The World Bank has lowered India's GDP growth forecast for FY 2025-26 to 6.3%, citing global economic headwinds and domestic policy uncertainties. The IMF also revised its projection downward to 6.2%. Across South Asia, growth projections have been broadly reduced, with the region expected to grow at 5.8% in 2025.

Nirmala Sitharaman is on an 11-day visit to the US and Peru, engaging in key international meetings. She will attend IMF and World Bank Spring Meetings, and the G20 Finance ministers meeting. Sitharaman will meet counterparts from various nations and global institution leaders.

Driven by a yearning for equivalence with India, the Pakistani top brass gambled on a terror attack to elicit an unavoidable Indian response. This high-stakes move, however, could prove ruinously expensive